Benefits of DEX
Trading on a DEX has many benefits that make it attractive to cryptocurrency users. Most importantly, DEXs disintermediate the trading ecosystem, eliminating middlemen and allowing free, direct trade between two parties. This is in line with the philosophy of decentralization and the mission of cryptocurrency in general. This alone has made DEXs a rallying cry for the decentralization-at-all-costs, libertarian diehards, of which the crypto community has little.
However, regular users may also discover other benefits of DEXs.
1. Anonymous
Since the purest form of a DEX only uses blockchain information, all you need to share to use a DEX is your public address. Most centralized exchanges require a full registration process using name, email, and even bank account information. Even anonymous crypto-to-crypto exchanges still require location information and other personal details to comply with government regulations and restrictions.
That said, if DEXs become more prominent, they will likely face encounters with regulators. Most DEX creators plan to say they are simply releasing open-source software and are not responsible for the community’s actions on that software, thus avoiding KYC and AML issues. However, it remains to be seen whether this argument is legally tenable in the long term, especially if damages are caused by poorly written contracts or security breaches.
2. Fund Control
DEXs are usually (but not necessarily) non-custodial. As a result, users can control their funds throughout the entire transfer process, right up to the moment of transaction when the smart contract executes the signed transaction. No more “funds are trouble” messages. It is the DEX’s responsibility to keep funds safe.
3. Hacker
History of Centralized Exchange Attacks
Because DEXs exist across a network of computers, attacks are more complex. There is no single point of entry or failure. This makes DEXs exponentially more secure. It also makes them more difficult to design and test, which is one of the reasons why DEX development has been slow to date.
4. Downtime
Because there is no single point of failure in a distributed exchange, DEXs are less likely to fail. The rollout of updates is done node by node. Even if individual nodes have to shut down due to maintenance or attacks, the remaining nodes can still operate the exchange network.
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DEX of different chains currently on the market
1. Total value locked and market capitalization of derivatives
①@GMX_IO
②@dYdX
③@ApolloX_Finance
#Aribitrum is represented by #GMX
Representing#Ethereumis #DyDx
Representing#BNBChainis#APXwith data
We can see that $APX has the greatest near-term growth potential.
2. Transaction Fees
The pressing issue for#Traders🎯 is that sometimes trade summaries are profitable, but the trading#feeis so much that they can become a #loss.
3.1 Lite Mode (ALP-PERP)
📈Simple transaction
📔No order book
🎯 Directly based on the mark price
📵Trading Zero slippage trading => avoid price manipulation and ensure fairness for traders
3.2#ALPpool
ALP pool is a form of providing liquidity by purchasing and pledging ALP using any asset. The starting price of ALP is $1
Participants who participate in $ALP👯 will receive ~40% APY token $APX rewards
3.2 (Cont) Generation Real
Yield✍️It not only rewards liquidity providers through revenue sharing (#Real#Yield ), e.g.
@GMX_IO
@ApolloX_Finance
Rewards are also paid through sharing of profits, losses and liquidation fees.
🎉 Trade for double profits and future $APL price increases.
3.2 (Continued)
Generate actual yield =>@ApolloX_Finance
It is the new generation of Real Yield and a catalyst for the development of DEX, and it is better than the floor exchange.
3.3 Token Buyback💵Destruction Every month, the exchange will purchase a certain amount of $APX tokens in the secondary market and inject them into the Dao reward pool to reward#veNFTholders. => Make supply scarce => Increase APX price => Reward APX holders🔥
3.4 Trends
Trend of users attracted to DEX derivatives after the #FTX✍️ crash and the need to self-trade and manage tokens (not your keys, not your coins)
Of course DEX will grow very strongly, with revenue and users increasing every day.✍️
3.4 (Continued from 1)
On the investment side 💰, we see #TVL
@GMX_IO
@dYdX
Quite high, with quite a lot of cash flow coming in.
3.4 (Continued 2)
🔥I'm pretty sure the explosion came from
@BNBChain
ecosystem.
💵The best projects are all from @BinanceLabs
@ApolloX_Finance gets support from @binance
4 Pool Comparison
If it is $APX and $GMX with similar patterns, then I think the reference of the pool is of great significance.
Currently, the $GLP pool supports the staking of $BTC and $ETH, as well as stablecoins, etc.
As of February 9, the $GLP pool has $457M
As of February 9, the current pool of $ALP is $6M
The gap between the two pools is 70 times, so does BSC's APX have unlimited potential?
ApolloX, one of BSC’s star projects
🧐Stay tuned to see what happens next!
Some of the content comes from BSC Economy and is for reference only and does not constitute investment advice.
